- Top Indian IT firms cut 6,981 jobs in FY26, reversing FY25's net hiring of 12,718
- TCS led cuts with 23,460 job reductions, Tech Mahindra cut 1,108 roles
- Infosys, Wipro, HCLTech added staff but at a slower, controlled pace
India's top IT services firms dialled back hiring in FY26, reversing the modest recovery seen a year earlier. Combined, Tata Consultancy Services, Infosys, Wipro, HCLTech and Tech Mahindra reported a net reduction of 6,981 employees during the fiscal. This compares with a net addition of 12,718 employees in FY25.
TCS led the decline, cutting 23,460 roles over the year, while Tech Mahindra reduced headcount by 1,108 employees, the Economic Times reported, based on information collated from official company filings. In contrast, Infosys, Wipro and HCLTech continued to add workers, albeit at a slower pace, reflecting tighter control over utilisation and margins.
The hiring slowdown comes amid persistent demand uncertainty, delayed client decision-making and a growing reliance on AI-driven efficiencies, all of which have reshaped workforce strategies.
Shift Towards Skills-Led Hiring
The report highlights a broader transition from scale-led expansion to a skills-first approach. While hiring has not dropped to FY24 levels, when the sector shed over 69,000 jobs, visibility on growth remains limited.
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Analysts, as cited in a Times of India report, point to a clear pivot towards efficiency-focussed operations. Companies are increasingly prioritising AI-native talent, along with specialists in artificial intelligence, cloud, data and cybersecurity, marking a departure from the traditional model where growth was closely tied to headcount expansion.
Industry Headcount Still Rises
Despite caution among large IT firms, overall industry employment continued to inch higher. Total headcount rose by 1.4 lakh to 59 lakh in 2026, according to Nasscom, slightly above the 1.3 lakh increase recorded a year earlier.
Much of this incremental growth has been driven by the continued expansion of global capability centres (GCCs), which are scaling up their India operations for the third straight year.
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Hiring Outlook Remains Subdued
Hiring trends remain muted at the start of FY27. Active tech job openings stood at 110,000 in April 2026, down 8% month-on-month, according to staffing firm Xpheno.
The IT services segment accounted for 43,000 roles, declining 7% both sequentially and year-on-year. Its share in overall tech hiring has slipped below 50% for the first time since December 2025, underscoring continued strain in India's largest tech employment engine.
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